From now on, the privacy watchdog Authority for Personal Data (AP) also assesses algorithms at organizations and companies. This is important, because they can be used, for example, for job applications or to provide mortgages. The new supervision must, among other things, tackle discrimination by computers.
In short, an algorithm is a set of rules that a computer follows to achieve a goal. At the start of the new algorithm supervision on Monday, AP chairman Aleid Wolfsen once again pointed out what is possible with these types of rules.
This way they can detect fraud and diagnose depression. “But they can also help with who you invite for an interview,” says Wolfsen. “And they can decide who has to pay up front with an online purchase and who can pay afterwards.”
It can affect a lot of people if algorithms are trained with wrong information. For example, bias and discrimination can creep in. “Software offers us great opportunities and innovative developments, but we have to keep an eye on the dangers that exist,” says Wolfsen.
Algorithms not always necessary
It must become much more transparent how algorithms work exactly. “We want to understand how decisions are made with algorithms,” says State Secretary Alexandra van Huffelen (Digitization).
In addition, citizens must be given more control over how their data may be used by algorithms, adds Minister Franc Weerwind (Legal Protection). According to him, digital technology should serve people and not the other way around.
Algorithms are also not always necessary for organizations to be able to carry out their work, Van Huffelen says to NU.nl: “Sometimes alternatives are better.” That is why companies must first make a risk analysis before they use algorithms to automate human activities, for example.
New part and more budget for AP
The AP will have a new directorate for its supervision of algorithms: the Coordination Algorithms. It will consist of about ten to fifteen people, says Wolfsen. In 2023, the AP will receive 1 million euros for its new tasks. This amount will increase in the coming years to a structural amount of 3.6 million euros in 2026.
Wolfsen “doesn’t want to grumble too much at the festive meeting”, but still calls his organization “generously too small” to be able to fulfill its duties. The AP has been saying for years that it has too many tasks on its plate and too little budget.
Algorithm supervision is now starting, but there is still a lot to be completed. “The most important thing is that we quickly start collaborating with other regulators, because algorithms are used everywhere,” Wolfsen told NU.nl. In addition, work is being done on a standards framework, which states which requirements algorithms must meet. There will also be transparency obligations for organizations.
First fine over incorrect algorithms already handed out
Although some aspects of supervision will only take shape in the near future, the AP can start enforcement if organizations do not have their algorithms in order. The AP already has sectors in mind that it wants to investigate, although Wolfsen does not want to say anything about that yet.
“The first fine has actually already been handed out,” says Wolfsen. He refers to the Tax and Customs Administration. At the end of 2021, that organization was fined 2.75 million euros for the benefits scandal, in which discriminatory algorithms played a major role.
